ACE Market-listed aquaculture-based food producer MAG Holdings Bhd (formerly XingHe Holdings Bhd) has taken bold steps to accelerate its investment into the thriving shrimp farming industry in Indonesia.
This is made possible with a productive meeting between the group’s executive chairman Ng Min Lin and the West Nusa Tenggara (NTB) governor Pak Zulkieflimansyah.
The interest seen during the meeting is a testament to MAG’s commitment to building a strong and productive business relationship with the Indonesian government.
During this productive engagement, Zulkieflimansyah conveyed unequivocal support for MAG’s expansion endeavours, emphasising the potential economic boost the project is poised to bring to the region.
His endorsement accelerates MAG’s strategic investment initiative, streamlining procedural formalities and paving the way for expedited operational roll-out.
“We profoundly appreciate Governor Zulkieflimansyah’s commitment and the wider Indonesian government’s endorsement. This partnership fortifies our presence in Indonesia, simultaneously driving regional economic development,” commented MAG’s chairman Ng.
The meeting followed MAG’s signing of a term sheet with LIM Shrimp Organization Ltd (LSO) regarding a proposed 50% equity investment in Lim Shrimp Aquapolis Pte Ltd (LSA) and a joint venture with PT Gerbang NTB Emas (PT GNE) for shrimp farming in Sumbawa, Indonesia.
This S$6.1 mil (RM22 mil) investment expands MAG’s portfolio, underscoring its confidence in the growing shrimp industry. LSO operates fish butcheries and farms while LSA provides management and aquaculture consultancy.
Support from the Indonesian government and other stakeholders will boost the financing agreements with Bank NTB which will accelerate MAG’s investment into the shrimp farming industry in Indonesia.
Underpinned by financing arrangements with Bank NTB and a three-year tax-free operational head start, MAG is well-positioned to capitalise on this venture promptly. The readiness of PT GNE to facilitate infrastructural support further strengthens MAG’s strategic orientation in the region.
The Indonesian Government’s eagerness to expedite requisite permits and support the enhancement of the Pelabuhan Badas Port for 20-feet export-grade reefer containers will significantly streamline the exporting processes to key global markets, including the US, European Union (EU), China and Australia.
“With our synergistic collaboration with LSO, PT GNE and the staunch support from the Jakarta, we are geared to deliver substantial medium and long-term earnings, fostering not just profitability but also supporting the sustainable evolution of the local shrimp farming industry,” added Ng.
At the close of today’s market close, MAG was down 0.5 sen or 2.38% to 20.5 sen with 3.89 million shares traded, thus valuing the company at RM327 mil. – July 6, 2023
